FUQI International, Inc., the Chinese designer of precious metal jewelry, operating through the BVI-registered subsidiary Fuqi International Holdings Co., Ltd. (Fuqi BVI), has announced financial results for the three month period ended June 30, 2008.
The company reported the increase of revenues of 154 per cent for this period, which became the result of increases in sales volumes and selling prices, and raised the amount of revenues from US$26.3 mln for the second quarter of 2007 to US$66.9 mln in this year. Due to higher selling prices for new jewelry designs and increased processing fees on jewelry, gross profit increased 129% in the Q2 period, from US$3.1 mln for the same period in the last year to US$7.1 mln.
Gross profit margin for the second quarter of 2008 was 10.6% – the amount which corresponds to company’s profit guidance for this period, published earlier and affirmed in July following the earthquake in China.
Operating expenses in the second quarter of 2008 increased to US$1.1 mln, compared to US$927,000 in the same period of the prior year, as a result of higher administrative expenses of the company. Operating income for this period increased to $6.0 mln from $2.1 mln in the second quarter of 2007.
Net income for the second quarter of 2008 increased by 253%, from US$1.5mln in Q2 2007 to US$5.3 mln, or $0.25 per diluted share.
FUQI International also raised its fiscal 2008 revenue, net income and diluted earnings per share (EPS) forecast. The company estimates total revenue in the amount of approximately US$325 – US$333 mln, and anticipates consolidated net income of $23.7 – $24.3 million and diluted EPS of US$1.07 – US$1.09. In 2008, the company expects long term wholesale gross margin of 10.5%, with additional gross margin upside, as its branded retail business becomes more meaningful to overall sales.
Talon Metals Corp. (BVI), TSX-listed mineral exploration company engaged in the projects located in Brazil, announced its financial results for the three month and six month periods ended June 30, 2008.
Net earnings of the company for the second quarter 2008 made US$1,023,538, or US$0.04 per share (basic or diluted). This became the result of an unrealized gain on investments in the amount of US$1,462,650.
Talon Metals reported its net earnings for the six month period of 2008 making US$293,990, or US$0.01 per share.
The above results of the BVI company should be compared to a loss of US$978,845 or US$0.04 per share for the three month period ended June 30, 2007, and earnings in the amount of US$8,467,901 or US$0.31 per share for the first six months of the last year.
Capitalized exploration for the reported three- and six-month periods of 2008 made US$442,699 and $935,841 respectively, and relates mainly to work done on the Agua Branca Project. These amounts compare to US$548,696 and US$1,056,722 for the respective periods of the year 2007.
BVI-incorporated Euro Tech Holdings Company Limited announced that its wholly-owned subsidiary, Shanghai Euro Tech Environmental Engineering Company Limited and majority owned subsidiary, Yixing PACT Environmental Technology Company Ltd., a global provider of environmental solutions for industrial and municipal clients, have recently been awarded contracts from Shangdong YangCheng power generation company based in Yang Cheng, and US chemical company based in Nanjing Chemical Industrial Park. The contracts covering design, supply, installation and commissioning at sites are worth about US$1.9 mln and US$1.6 mln, respectively.
The contract of the BVI company with Shangdong YangCheng is to provide water treatment services for the boiler make-up water for the two new 150 Mega Watt power plants. The US global chemical company’s contract is for a new 250M3 per day wastewater treatment plant, to be completed by the end of November 2008.
Mr. T.C. Leung, Chairman and CEO of the company, commented that they are very pleased the contracts “are gradually being materialized in the second half of 2008, due to national disasters in February and May 2008.”
BVI-registered Qiao Xing Universal Telephone, Inc. has reported its financial results for the first quarter of 2008. The unaudited results were announced for the three months ended March 31, 2008. According to the main highlights, net sales made RMB 764.4 mln (USD 109 mln) compared to RMB 870 mln for the same period of the year 2007. Gross profit made RMB 214 mln (USD30.5 mln) versus RMB 145 mln for the year-ago period. Sales revenue was primarily contributed by company’s major operating subsidiary CEC Telecom Company Limited (CECT), involved in the mobile phone handset business, as the volume of mobile phone handsets increased 12.4% compared to the first quarter of 2007. Although sales revenue from the sale of CECT-branded handsets decreased in spite of the increase in sales volume, gross margin increased to a high level of 31.4% of revenue in the first quarter of 2008.
Gross profit and income from operations of the CECT-branded handset business increased 14.1% and 13.3% respectively, from the same period of the last year.
Gross margins in the first quarter of the year 2008 made 28% of net sales, versus 22% for the year-ago period. This improvement was mainly due to an increase in the sales of higher-margin differentiated CECT-branded mobile phone handsets produced by CECT.
Income from operations reported by the BVI company was RMB 158.6 mln (USD 22.6 mln) compared to net loss of 145.0 mln for the year-ago period. Net income made RMB 46.2 mln (USD 6.6 mln) versus net loss of 97.5 mln for the first quarter last year.